Lamb Weston (LW) got here out with quarterly earnings of $0.73 per share, in step with the Zacks Consensus Estimate. This compares to earnings of $1.63 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
1 / 4 in the past, it was anticipated that this frozen meals provider would publish earnings of $1.24 per share when it truly produced earnings of $0.78, delivering a shock of -37.10%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
Lamb Weston
The sustainability of the inventory’s speedy worth motion primarily based on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.
Lamb Weston shares have misplaced about 40.1% for the reason that starting of the 12 months versus the S&P 500’s achieve of 20.8%.
What’s Subsequent for Lamb Weston?
Whereas Lamb Weston has underperformed the market to this point this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis exhibits a robust correlation between near-term inventory actions and traits in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested score device just like the Zacks Rank, which has a formidable monitor file of harnessing the ability of earnings estimate revisions.
Forward of this earnings release, the estimate revisions pattern for Lamb Weston: unfavorable. Whereas the magnitude and path of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #5 (Robust Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You may see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $1.20 on $1.67 billion in revenues for the approaching quarter and $4.54 on $6.61 billion in revenues for the present fiscal 12 months.
Traders ought to be conscious of the truth that the outlook for the trade can have a fabric impression on the efficiency of the inventory as effectively. When it comes to the Zacks Business Rank, Meals – Miscellaneous is at present within the prime 41% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One different inventory from the broader Zacks Shopper Staples sector, Colgate-Palmolive (CL), is but to report outcomes for the quarter ended September 2024. The outcomes are anticipated to be launched on October 25.
This shopper merchandise maker is predicted to publish quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +2.3%. The consensus EPS estimate for the quarter has been revised 0.1% increased during the last 30 days to the present degree.
Colgate-Palmolive’s revenues are anticipated to be $5.01 billion, up 1.9% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
